April 4, 2017

Seven ways of raising capital for a startup

There are several ways of raising capital for a startup. And most new business, consider this the most important and the main aspect when starting a new business. Indeed, sometimes it is very difficult to run a business, develop when finance is not enough, but it is fixable, in this article, I’ll give you seven simple ways of raising capital:


  1. Business Plan

If you decide to collect a sum of money, the first step is to have a business plan. This point is very important especially for potential investors, and allows you to clearly define your goals in business tasks, including follow your financial requirements. On the Internet a lot of resources on which you can find ready-made business plans, or order its creation depending on your wishes.

  1. Meeting new people

According to statistics, about 4 out of 5 Me is themed social network. They have the opportunity to find like-minded investors, which need to be interested in your new business, perhaps they will become your companions that will contribute to and assist in the opening of the case.

  1. The content and structure of the transaction

Typically, the first business is not recommended to bring the bank’s creditors. And more than likely that your new business, one of the first investors will be friends, family, financial security partners. Thus, it is simply necessary to structure the transaction in such a way that would suit your potential investors. Create the conditions that determine their role in your business, whether the transaction is debt or equity, evaluation, and so on. Therefore, I advise aspiring entrepreneurs when setting these parameters, execute all legally correct, it would be in the event of unforeseen circumstances, you have not had any complaints or vice versa, to note certain conditions that must be done, in this situation, the right to be consulted with lawyers.

  1. Practice, practice and practice again!

The fourth way to raise capital. It is necessary to constantly try! Set goals, make the right moves, learn to accept criticism of others. I think if you like a real businessman have business acumen, you can easily, quickly, will be able to generate new interesting ideas for business development, attraction of additional capital into it. As you evolve, learn from your mistakes and successes, and without it cannot do more than one thing, you’re moving in the right direction.

  1. Work with investors

Sometimes, it is easy to find an investor for the business, but no matter how tempting offer, do not take money from anyone and everyone. If your interests diverge, it is better to wait. It is important to pay attention to those people, who not only invest their money in your business, but also offer something more. Such people tend to be able to share with you interesting ideas, experiences, give new promising acquaintances, even the media. In addition, it is important that an investor was interested in launching a startup. This set of circumstances, often leads to rapid development of the company, I think it’s the most useful way of raising capital, without massive investment.

  1. Be prepared

Often, investing in your business, people are interested in financial documents. Do not forget to save all: receipts, bank statements, equity financing documents, and so on; it is the basics of entrepreneurship. Provide all possible information to potential investors, as soon as possible, it will talk about your serious intentions.

  1. Development of new business

Raising capital, it takes a lot of time and extra effort. But wasting your time to collect additional funds does not mean to forget about the other aspects of the new business. You still need to continue to build and develop a start.

How do you use the methods of raising capital for your business? Share in the comments below.

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